Caravan, Motorbike, Boat and Jet Ski Loans: How Leisure Finance Works
How caravan, camper trailer, motorhome, motorbike, boat and jet ski loans work in Australia: terms, age limits, balloons, private sales and insurance.
The short answer
Caravans, camper trailers, motorhomes, motorbikes, boats and jet skis are usually financed with a secured loan, much like a car loan. The lender holds the caravan, bike or boat as security, which keeps the rate lower than an unsecured personal loan.
The differences are in the detail: which assets each lender accepts, how old they can be, the maximum loan amount and term, and whether a balloon is available.
Which lenders finance what
Not every car lender finances leisure assets, and those that do often have different rules for each type:
- Caravans, camper trailers and motorhomes: widely financed, often over longer terms because they hold their value well.
- Motorbikes: financed by many lenders, sometimes with lower maximum loan amounts and specific rules for off-road bikes.
- Boats: financed by fewer lenders, often with rules on the type and size of boat and its trailer.
- Jet skis and other personal watercraft: financed by a smaller group of specialist lenders.
Some lenders specialise in leisure finance and accept a wider range of assets and ages. Comparing lenders matters more here than for an ordinary car loan.
Age limits, terms and balloons
Like car loans, leisure loans are usually available over one to seven years, with the lowest rates for new assets. Lenders often set a maximum age for the asset at the start or end of the loan, so an older caravan or boat may qualify for a shorter term.
Some lenders offer a balloon on new and near-new caravans and motorhomes. As with any balloon, it lowers your repayments but leaves a lump sum owing at the end, so think about what the asset will be worth then.
Private sales and checks before you buy
Leisure assets are often bought privately. Lenders that finance private sales usually ask for the seller's ID, proof of ownership and bank details, and sometimes an inspection.
- Do a PPSR search before you buy. It costs $2 and works for registered caravans, trailers and motorbikes, and for boats and jet skis with a hull or serial number.
- Check the registration and that the seller is the registered owner.
- For a boat, get the motor and hull inspected. For a caravan, check for water damage and that the tow vehicle can legally tow it.
Insurance and running costs
The lender will usually want the asset insured for as long as the loan runs. When you budget, allow for:
- Insurance and registration.
- Storage and mooring for boats, and storage for caravans if you cannot keep it at home.
- Servicing, tyres and maintenance.
- For a caravan, whether your car can tow it, or whether you need a new tow vehicle too.
Comparing leisure loans with Flash Funding
Our comparison tool covers caravans, camper trailers, motorhomes, motorbikes, boats and jet skis. Choose what you are buying, enter the price, any deposit and the term, and it shows indicative options from lenders on our panel that finance that asset. Comparing involves no credit check.
Read more about caravan, motorbike and boat finance.
Frequently asked questions
Can I get finance for a used caravan?
Yes. Many lenders finance used caravans, although older ones may qualify for shorter terms, smaller balloons or fewer lenders.
Is a caravan loan the same as a car loan?
It works the same way, as a secured loan, but lenders set their own rules for caravans, including age limits and maximum loan amounts.
Can I finance a jet ski?
Yes, but fewer lenders finance jet skis and other personal watercraft. A broker can find the lenders that do.
Do I need a deposit for a boat loan?
Not always, but some lenders ask for one, particularly for older boats or if your credit history is limited. A deposit also lowers your repayments.
Sources
This guide is general information only. It does not take into account your objectives, financial situation or needs, and it is not credit, tax or legal advice. Tax and GST outcomes depend on your circumstances, so confirm them with your accountant. All finance is subject to lender approval, terms and conditions, and fees and charges apply.
Related reading
Related service: Caravan, motorbike and boat finance
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